Using Excel Formulas to Reference Other Formulas, Not Values

In Microsoft Excel, referencing a formula rather than just the result in another cell is essential when building dynamic worksheets. This approach enables a cell to point to another cell’s formula rather than just its value, providing flexibility when troubleshooting or managing complex data models. Let’s dive into the basics, procedures, and practical applications to understand how to reference a formula rather than just the value in Excel.

Basic Theory of Referencing Formulas

When you reference a cell in Excel, you typically get the cell’s value, not its formula. For example, if A1 contains =10+5, then referencing A1 in B1 will return 15 (the result), not the formula =10+5. In most situations, this is desirable, but there are instances where seeing or using the actual formula is useful, such as:

• Understanding cell dependencies: Helps in tracking where values originate.
• Auditing calculations: Useful in tracing errors or validating logic.

Key Concepts:

1. Direct Cell Reference: Refers to pointing directly to another cell’s result.
2. Formula Extraction: In Excel, directly referencing another cell’s formula isn’t natively supported, but workarounds and functions can achieve similar results.

Procedures for Referencing Formulas in Excel

To achieve referencing or displaying another cell’s formula rather than just the result, we can use a few techniques.

1. Direct Cell Reference:
   Simply reference another cell to get its value. For example, typing =A1 in B1 copies the value in A1 to B1.
2. Using the FORMULATEXT Function:
   FORMULATEXT is an Excel function that returns a formula as a text string, allowing you to display the formula rather than its result.
   Syntax: =FORMULATEXT(reference)
   Example: If A1 contains =10+5, typing =FORMULATEXT(A1) in B1 will display =10+5 as a text string in B1.
3. Creating References to Maintain Dynamic Relationships:
   When using FORMULATEXT, remember that while it displays the formula, it doesn’t execute it in the new cell. For maintaining calculation integrity across cells, use combinations of direct referencing and cell dependencies.

Using FORMULATEXT for Dynamic Formula Referencing

Scenario:

Imagine you have a table in Excel that tracks monthly sales data and calculates monthly growth rates based on these sales.

1. In Column C, we have entered the formulas manually for growth rate calculations. We would like to display these formulas in Column C and calculate the actual growth rates in Column D.
2. Procedure:
   To view the formulas in Column C without calculating them, we type them directly as text or use FORMULATEXT where applicable. To make this dynamic:
   • In cell C3, type =FORMULATEXT(D3). Repeat this in C4 and C5 to display the formulas.
   • In Column D, input the formulas for actual growth calculations:
     • In D3, type =((B3-B2)/B2)*100 to calculate February’s growth rate.
     • Repeat this in D4 and D5 for March and April’s growth rates.
3. Results:
   Using the actual formulas, Column D will provide the monthly growth rates based on the data in Column B, while Column C will display the formula.

Additional Approaches

1. Using VBA to Extract Formulas Dynamically:
   VBA (Visual Basic for Applications) can be used to create a custom function that extracts a formula from one cell and places it in another. This is particularly useful when building more advanced models.
2. Excel’s Show Formulas Mode:
   Another approach for auditing purposes is to enable Excel’s Show Formulas mode:
   • Go to the Formulas tab > Formula Auditing group > Show Formulas. This will display all formulas in their cells rather than the calculated values, which is helpful when reviewing or debugging formulas.

Referencing formulas rather than values in Excel enhances transparency, especially in financial modeling, auditing, or any situation requiring clarity on calculation origins. Using functions like FORMULATEXT can be invaluable when documenting formulas in a way that’s both easy to understand and review.

This approach, along with options like VBA and Show Formulas mode, provides flexibility for anyone needing to manage complex formula dependencies in Excel.